Stock tips for June 2, 2011. Buy Tata Global

Commentary

oi-Shoaib MD

By Shoaib Md

Published: Thursday, June 2, 2011, 11:46 [IST]

We bring to you the stock recommendations for June 2, 2011. Though high fuel prices and interest rates may have directly dampened auto sales and will likely make investors leave auto stocks. But there are many other avenues of opportunities for investors.

For today, Rakesh Mehta, Research Analyst, Fullerton Securities & Wealth Advisors has recommended the following stocks on the website of Economic Times. He considers the following 5 stocks as hot stocks to follow for the day.

Tata Global: Mehta recommends to buy this stock witha target price of Rs 105 and a stop loss at 87. He says, last month the stock had slipped almost 15% before hitting its 200-week moving average (WMA). We expect it to take support at these levels. Weekly RSI and stochastics are now in the oversold zone and could support the bounce.

Mundra Port: Here also the recommendation is to buy with a target price of Rs 185 and stop loss at Rs 155. The stock is forming a higher-top-higher-bottom pattern and has taken support at its 100-WMA. Weekly RSI and stochastics point towards the continuation of the uptrend. We expect it to achieve Rs 180, but maintain a strict stop loss of Rs 155.

Reliance Communications: Here the suggestion is to buy with the target price on this stock at Rs 105 and a stop loss of Rs 89. The stock underwent a drastic correction of almost 20% last month and hit its all-time low. The RSI and stochastics on the weekly charts are now showing positive indication pointing towards a relief rally for the stock. The target is Rs 105.

Reliance Capital: This stock has a recommendation of buy with a target price of Rs 575 and a stop loss of Rs 500. After a significant year-to-date correction of 25%, the stock finally formed a base at Rs 500. Strong accumulation has been witnessed at these levels and the stock is poised for a recovery. We expect an immediate target of Rs 575.

SAIL: Mehta recommends a buy with a target price of Rs 160 and stop loss of Rs 137. The stock is on the verge of a trend reversal after being in a downtrend for the past one year. On the daily charts the RSI and MACD are indicating buy signals. If the stock holds above Rs 135, we can see the stock climbing to Rs 160 in the short term.

Meanwhile ShareTipsInfo has recommended Reliance Infrastructure for future intraday with a target price of Rs 594-598 and stop loss of Rs 573.

The experts at NiftyFutureKing have recommended Ambuja Cement for both sides of the trade.

They have put a buy on the stock (Ambuja Cement) at price of Rs 144.65 with a stop loss of Rs 143.35 and their first target price is Rs 146.25; meanwhile their second target price is Rs 140.25.

On the sell side their recommendation on Ambuja Cement is, if it reaches Rs 141.8 with a stop loss at Rs 143.05 and their first target price is Rs 140.25 followed by a second target price of Rs 138.15.

On the website, Technicalanalysisofstocks.in, the recommendation is to sell Aban Offshore with a stop loss of Rs 622 and a target price of Rs 580. They reason that the stock is witnessing a Doji formation near minor top.

Meanwhile Firstpost.com have picked M&M, Hindalco, Aurobindo Pharma, Aban Offshore, Cipla, Kotak Bank, Nalco, Educomp and PFC as the 9 stocks to follow for the day.

OneIndia Money DISCLAIMER: OneIndia Money provides you with information covering shares, futures and options based on broker's reports as stated on various media. Investors are, however, warned that they should NOT take any buy or sell decision based on these views expressed in the article. Investors should consult their own financial and share advisors before taking purchase or sale decisions. OneIndia Money does not take any responsibility for any losses incurred by investors who take their cues from the above article.